Last checked at 
(Alliance News) - European equities were largely higher on Monday, though the FTSE 100 fell into the red before midday, hurt by a rising pound, signs of pre-central bank nerves, and a UK warning on the Omicron Covid-19 variant.
The FTSE 100 index was down 4.77 points, or 0.1%, at 7,287.01 midday Monday. The mid-cap FTSE 250 index was down 118.90 points, or 0.5%, at 22,808.81. The AIM All-Share index was down by 4.09 points, 0.3%, at 1,186.86.
The Cboe UK 100 index was down 0.2% at 722.59. The Cboe 250 was down 0.7% at 20,195.01, and the Cboe Small Companies was 0.3% at 14,921.13.
In mainland Europe, the CAC 40 stock index in Paris was up 0.2%, while the DAX 40 in Frankfurt was 1.0% higher.
"European shares opened without clear direction, following a trendless Asian trading session, after a calm start on the macro front. However, this calm will be short-lived as investors brace for the economic storm caused by central banks with policy decisions awaited from 20 of them around the world this week," ActivTrades analyst Pierre Veyret commented.
The most important of these are from the US Federal Reserve on Wednesday and the Bank of England and European Central Bank on Thursday.
"While volatility should remain high, we don't expect any clear direction to emerge prior to the central banks' meeting as policies should set the trading tone, providing investors with more clues on next year's investing environment. However, surprises may happen this week as many investors still wonder how the Fed can go further with its hawkish stance while US data remains concerning."
The dollar was largely firmer ahead of the central bank deluge. The greenback did surrender some of its recent gains on the pound, however.
Sterling was quoted at USD1.3253 midday Monday, up from USD1.3235 at the London equities close on Friday. Stacked with international earners, a rising pound is a headwind for London's flagship FTSE 100 index.
The euro was priced at USD1.1272 midday London time, down from USD1.1314 late Friday. Against the Japanese yen, the dollar was trading at JPY113.66, up from JPY113.28.
An ounce of gold fetched USD1,787.90 midday Monday, up from USD1,785.71 at the London equity market close on Friday.
Gold miner Fresnillo was the best FTSE 100 performer, up 3.3% midday Monday.
British Airways-parent International Consolidated Airlines Group was the worst performer, down 3.6% in a difficult session for the travel sector.
The UK's largest airlines and travel companies bemoaned "haphazard and disproportionate" travel restrictions imposed by the government.
Tougher rules introduced due to the Omicron coronavirus variant mean everyone entering the UK must have evidence of a negative pre-departure test, and self-isolate until they receive a negative result from a post-arrival test.
People arriving in the UK from the 11 African countries currently on the red list must spend 11 nights in a quarantine hotel at a cost of GBP2,285 for solo travellers.
UK Prime Minister Boris Johnson over the weekend warned the Omicron variant of Covid-19 could cause "very many deaths".
easyJet and Wizz Air were down 3.8% and 4.1%, among the worst FTSE 250 performers.
Capita dropped 19%, as it revealed minor revenue growth so far in 2021. The outsourcer, whose operations include the Ultra-Low Emission Zone on London roads, said revenue from the public sector was offset by declines in private sector work. Capita said it suffered from contract losses.
"We have continued in recent months to make progress with our corporate transformation, particularly in our Public Service division. However, Covid has continued to impact some businesses within our Portfolio division. This, combined with the anticipated revenue attrition in our Experience division has slowed the overall rate of top-line growth this year," Chief Executive Jon Lewis said.
Revenue in the 11 months to November 30 was up 0.6% yearly to GBP2.88 billion.
At the other end of the FTSE 250, Jupiter Fund Management jumped 7.9%. Sky News over the weekend reported the fund manager has hired advisory firm Robey Warshaw to boost its defence against potential takeover tilts.
Citing City sources, Sky News reported that while an offer has yet to materialise, a number of financial and strategic bidders are circling.
Jupiter Fund Management currently has a market value of around GBP1.40 billion.
Over in Frankfurt, a share price gain for Daimler helped lift the DAX. The Mercedes Benz owner was trading 1.9% higher.
Daimler on Monday confirmed Beijing Automotive Group has held just shy of a 10% stake in the firm since 2019.
"We welcome all long-term strategic shareholders who support our strategy. During our partnership with BAIC, China has emerged as the largest global market for Mercedes-Benz and as a key driver of the shift towards electric mobility and digitalization. BAIC's shareholding is a reflection of their commitment to our joint successful manufacturing and development alliance in the world’s biggest car market," Daimler CEO Ola Kallenius said.
Recently spun-out Daimler Truck, meanwhile, was up 8.0% on Monday, following a decent debut on Friday.
US equity market futures were higher on Monday. The Dow Jones Industrial Average was called up 0.2%, the Nasdaq Composite up 0.4% and the S&P 500 up 1.3%.
Brent oil was quoted at USD74.84 a barrel midday Monday in London, up from USD74.64 late Friday, but down markedly from an intraday high of USD76.37.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
